Post Office Savings Account 2026: Major Update in Withdrawal and Minimum Balance Limit

Post Office Savings Account is one of the most popular option for individuals offering a 4% per annum interest rate with government-backed security. 

However, account holders should also understand the certain limits on daily withdrawals, free ATM transactions, additional charges, minimum balance requirements and interest calculation rules.

Post Office ATM Withdrawal Limit

The ATM withdrawal limits are:

Maximum Free ATM Transactions Allowed

The number of free ATM transaction for Post Office Savings Account holder depends on whether you use a Post Office ATM or other bank's ATM.

For Example: When Charges Applicable

ATM Charges Apply After Free Transactions

Post Office may charge you for additional ATM transactions if it exceed the free transaction limits. The charges also depend on whether you make a financial or non-financial transaction.

Minimum Balance Required To Maintain in Post Office Savings Account

Post Office Savings Account holder must maintain of ₹500.

If your account balance is below ₹500 at the end of the financial year, a maintenance charge of ₹50 may be deducted.

If account balance becomes Nil, the account shall stand automatically closed.

Therefore, account holders should require to maintain at least ₹500 to avoid this charge.

How Is Post Office Savings Account Interest Calculated?

The interest @4% is calculated based on the lowest balance available in the account between the 10th day and the last day of each month.

Example:

Suppose you have ₹1 lakh in your Post Office Savings Account.

Here, lowest balance available in the account between the 10th day and the last day of each month = ₹90,000.

Therefore, Interest will be calculated on ₹90,000.

Always try to deposit additional money before the 10th to benefit from the monthly interest calculation.